Petrobras announces a partnership with BIOeCON, a Dutch company, development of a new process for enhanced conversion of biomass lignocelluloses, as found in agricultural wastes such as sugarcane bagasse, into chemicals that can be used to produce green plastics, or further transformed in next generation advanced biofuels.

The new technology, called BiCHEM (Biomass Chemical Conversion), was developed by BIOeCON with high potential for biofuels production for diesel blend content with superior energy density when compared with ethanol.

Petrobras and BIOeCON will work together to further develop this technology and establish proof of concept on pilot and demonstration scales. The first part of this work, including the pilot phase, will be performed in The Netherlands, while the demonstration plant is envisioned to be constructed in Brazil.

Therefore, Petrobras develops one more alternative for biofuels production and sustainable renewable chemical products in addition to its ongoing projects, as for example, the sugarcane ethanol process.

This announcement is not an offer of Petrobras shares. Petrobras shares may not be offered or sold in the United States absent registration or an exemption from registration, and Petrobras currently intends to register the proposed offering in the United States. Any public offering of Petrobras shares will be made by means of a prospectus containing detailed information about Petrobras and the offering.